UNITED STATES DISTRICT COURT WESTERN DISTRICT OF TEXAS

STANDING ORDER REGARDING DEPOSIT AND INVESTMENT OF REGISTRY

FUNDS

The  Court,  having  determined  that  it  is necessary  to  adopt  local  procedures  to 
ensure uniformity in the deposit, investment, and tax administration of funds in the
Court's Registry,

IT IS ORDERED that the following shall govern the receipt, deposit, and investment of
registry funds:

I. Receipt of Funds

A. No money shall be sent to the Court or its officers for deposit in the Court's registry
without a court order signed by the presiding judge in the case or proceeding.
B. The party making the deposit or transferring funds to the Court's registry shall serve
the order permitting the deposit or transfer on the Clerk of Court.
C. Unless provided for elsewhere in the Order, all monies to be paid to the Court or
received by its officers in any case pending or adjudicated  shall be deposited with the
Treasurer of the United States in the name and to the credit of the Court pursuant to 28
U.S.C. 2041 through depositories designated by   the Treasury to accept such deposits
on its behalf.

II. Investment of Registry Funds

A. Where, by order of the Court, funds on deposit with the Court are to be placed in
some form of interest bearing account, or invested in a court-approved, interest bearing
instrument  in accordance with Rule 67 of the Federal Rules of Civil Procedure, the
Court Registry Investment System (CRIS), administered by the Administrative Office of
the United States Courts under 28 U.S.C. 2045, shall be the only investment
mechanism authorized.
B. Interpleader funds deposited under 28 U.S.C. 1335 meet the IRS definition of a
"Disputed Ownership Fund" (DOF), a taxable entity that requires tax administration.
Unless otherwise ordered by the court, interpleader funds shall be deposited in the DOF
established within the CRIS and administered by the
Administrative Office of the United States Courts, which shall be responsible for meeting
all DOF tax administration requirements.
C. The Director of the Administrative Office of the United States Courts is designated as
custodian for all CRIS funds. The Director or the Director's designee shall perform the
duties of custodian. Funds held in the CRIS remain subject to the  control and
jurisdiction of the Court.
D. Money from each case deposited in the CRIS  shall  be  "pooled" together  with those
on deposit with Treasury to the credit of other courts in the CRIS and used to purchase
Government Account Series securities through the Bureau of Public Debt, which will be
held at Treasury, in an account in the name and to the credit ofthe Director of the
Administrative Office of the United  States  Courts. The pooled funds will be invested in
accordance with the principals of the CRIS Investment Policy as approved by the
Registry Monitoring Group.
E. An account will be established in the CRIS Liquidity Fund titled in the name of the
case giving rise to the deposit  invested  in the fund. Income  generated  from fund 
investments will be distributed to each  case  based   on  the  ratio  each account's
principal and earnings has to the aggregate principal and income total in the fund after
the CRIS fee has been applied. Reports showing the interest  earned and the principal 
amounts  contributed  in  each  case  will  be prepared and distributed to each court
participating in the CRIS and  made   available  to litigants and/or their counsel.
F. For each interpleader case, an account shall be established in the CRIS Disputed
Ownership Fund, titled in the name of the case giving rise to the deposit invested in the
fund. Income generated from funds invested will be distributed to each case after the
DOF fee has been applied and tax withholdings have been deducted from the fund.
Reports showing the interest earned and the principal amounts contributed in each case
will be available through the Fedinvest/CMS application for each court participating in 
the CRIS and made available to litigants and/or their counsel. On appointment of an
administrator authorized to incur expenses on behalf of the DOF in a case, the case
DOF funds should be transferred to another investment account as directed by court
order.

III. Fees and Taxes

A. The custodian is authorized and directed by this Order to deduct the CRIS fee of an
annualized 10 basis points on assets on deposit for all CRIS funds, excluding the case
funds held in the DOF, for the management of investments in the CRIS. According to
the Court's Miscellaneous Fee Scheduled, the CRIS fee is assessed from interest
earnings to the pool before a pro  rata  distribution  of  earnings  is made to court cases.
B. The custodian is authorized and directed by this Order to deduct the DOF fee of an 
annualized 20 basis points on assets on deposit in the DOF for management of 
investments and tax  administration.  According  to the  Court's Miscellaneous Fee 
Schedule, the DOF fee is assessed from interest earnings to the pool before a pro rata
distribution of earnings is   made   to   court   cases.   The   custodian   is further 
authorized  and directed by this Order to withhold  and pay  federal taxes due on behalf
of the DOF.

IV. Transition from Former Investment Procedure

A. The Clerk of Court is further directed to develop a systematic method of redemption

of all existing investments and their transfer to the CRIS.
B. Deposits to the CRIS DOF will not be transferred from any existing CRIS funds.
Only new deposits pursuant to 28 U.S.C. 1335 from the effective date of this order will
be placed in the CRIS DOF.
C. Parties not wishing to transfer certain  existing  registry  deposits  into the  CRIS may
seek leave to transfer them to the litigants or their  designees  on  proper motion and
approval of the judge assigned to the specific case.
D. This Order supersedes and abrogates all prior orders of this Court regarding the
deposit and investment of registry funds.
E. This Order is generally effective on the date of entry, but DOF provisions will become
effective the date the CRIS DOF begins to accept deposits.
IT IS SO ORDERED this 23rd day of September, 2016 Chief United States District
judge